The Treasury select committee will decide in the next few weeks whether the Which? plan for a Government-led equity-release scheme is a viable proposition.The consumer body has submitted preliminary proposals to the committee although it has still to determine details such as rates. It wants the Government to help finance and take the lead in a not-for-profit initiative to be run by a local authority or charity. Which? published a damning report into the equity-release market in January and remains convinced that the industry is incapable of servicing the entire market. Principal policy adviser Mick McAteer says: “We do not think the retail market will be able to provide equity release to those on lower incomes. We are not criticising the industry, it is just that it could be done by other means than what is available at the moment.” Key Retirement Solutions business development director Dean Mirfin says: “The problem with the Which? idea is that it is a good way for the Government to push people towards equity release and away from benefits.” A Pink Home Loans survey has revealed that 38 per cent of mortgage brokers are involved in equity release while 29 per cent say they would consider entering the market, despite fears about a lack of involvement byintermediaries.
Shadow Chancellor George Osborne claims the Revenue strongly criticised Gordon Brown’s “crazy changes” to IHT trusts before the Budget, warning it would bring in little but would cost hundreds of millions of pounds. Osborne was speaking in London this week at the first of a series of meetings with City groups to set out the […]
Tiner blames lack of industry engagement for the low take-up of stakeholder products
Lehman Brothers has unveiled plans to challenge HBOS in non-conforming mortgages after merging two subsidiaries to create a non-standard giant. The firm wants to be market leader in the non-standard sector and claims it is already number three after amalgamating Preferred and SPML’s operations. It says London Mortgage Company, which it recently acquired, could join […]
Leeds Building Society has launched a three year base rate tracker mortgage which is currently only 4.5 per cent, allows unlimited capital repayments without penalty and has no higher lending charge.
Fees under pressure. Regulatory moves against closet indexers. Rapid advances in financial technology. Shifting sentiment among investors. Such mounting challenges have led to widespread speculation about active management’s shrinking future. But a closer look inside intelligent portfolio construction today tells a story of expanding roles, added value, and innovative risk-adjusted, lower-cost solutions. Four investment experts […]
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A majority of independent financial advisers think there should be a single rate of tax relief according to this week’s Money Marketing poll. More than 120 advisers took part in the poll with 77 in favour of a single rate of tax relief, 39 against and six undecided. Yellowtail Financial planning managing director Dennis Hall […]
The FCA has issued a warning over ‘commoditised’ defined benefit pension transfers running the risk of unsuitable advice. In a letter sent to advisers holding pension transfer permissions, the regulator reminds planners that a “key area” of its focus is on pension transfers, and that it will later this year be contacting all firms to […]
Problems look set to arise for pension schemes operating relief at source